FIN 419 Week 1 DQ 3

What are some risk management techniques? Foremost, financial risk management is the understanding of the relationship between risk and return, and how to measure that relationship. Financial risk management involves analysis of risk and methods to mitigate risk that may lead to financial loss. For example, project risk can be estimated by viewing a plot of the probability distribution. The more spread out the distribution, the more risk involved. How would you use portfolio management to assess the risk and return of an investment? An efficient portfolio is one that maximizes return for